A major used car dealership in South Africa has been penalized for using unfair contract terms. WeBuyCars has agreed to a settlement with the National Consumer Commission following an investigation into numerous customer complaints. The company will pay a fine of two point five million rand and refund over three million rand to thirty-one specific customers who purchased faulty vehicles.
The investigation found the dealer's sales contracts violated the Consumer Protection Act by including clauses that unlawfully limited the company's liability for vehicle defects. These terms attempted to disclaim responsibility for mechanical failures, inaccurate odometer readings, and unreliable inspection reports. The National Consumer Tribunal formally ratified the settlement agreement.
As part of the resolution, WeBuyCars must comprehensively rewrite its terms and conditions to comply with the law and implement a consumer education program. The company has also committed to creating three hundred new customer service jobs over the next five years. This enforcement action highlights the regulatory focus on protecting buyers in the second-hand vehicle market, where consumers often bear significant risk.
The investigation found the dealer's sales contracts violated the Consumer Protection Act by including clauses that unlawfully limited the company's liability for vehicle defects. These terms attempted to disclaim responsibility for mechanical failures, inaccurate odometer readings, and unreliable inspection reports. The National Consumer Tribunal formally ratified the settlement agreement.
As part of the resolution, WeBuyCars must comprehensively rewrite its terms and conditions to comply with the law and implement a consumer education program. The company has also committed to creating three hundred new customer service jobs over the next five years. This enforcement action highlights the regulatory focus on protecting buyers in the second-hand vehicle market, where consumers often bear significant risk.
